Public Blockchains Are Not Sufficiently Confidential — Opinion
Sam Palmisano, the former chairman of IBM’s board of directors, who is now the head of the American Center for Global Entrepreneurship, a non-profit organization, stated on Bloomberg Technology that he doesn’t see a solution that could bring public blockchains into conformity with the European General Data Protection Regulation (GDPR).
Palmisano took part in the Bloomberg Markets program with David Kappos, a partner at Cravath, Swaine & Moore from the US. Kappos was a co-author of the study, in which the guidelines for the development of blockchains that comply with EU legal norms were set out.
The main focus of the discussion was on the interaction of innovations related to distributed ledger technology with the rules of the GDPR, which came into force in the spring of 2018.
Palmisano believes that several private blockchains with an adequate management structure may work well within the framework of the GDPR. However, he stressed that the situation is more complicated with public blockchains due to the nature of the information and the way it is distributed. Currently, the research is conducted in this area, but he still does not know a single solution to the problem.
Kappos believes that the European Union now holds a leading position in terms of developing laws in the field of digital information protection. In his opinion, there is nothing of the kind in the USA.
As previously reported, the Turkish telecom company Turkcell announced the use of the blockchain service, which will ensure the confidentiality of data under the GDPR.